Uttar Pradesh state government has given permission to sugar mills to manufacture ethanol directly from sugarcane, reports agency sources.

The government has amended the existing rules in this regard. According to amendment, sugar mills can now directly make ethanol and sugar from the cane and the sugar mills of the state facing financial crisis due to slump in sugar price could also cover up their losses. This decision will help the mills to pay good price to the cane farmers while paying all their dues.

At present, the central government has made mixing of 5% of ethanol in the petroleum products mandatory and it is likely to be hiked to 10% very soon.